"I think we’ll start to see the normal spring selling season being another strong one this year, even if it isn’t as strong as what we saw in 2013."

Sydney was one of the strongest performers over the month of June, second only to Melbourne where values grew by 1.8 per cent. This is a significant turnaround for the southern capital. According to RP Data, Melbourne home values dropped by a staggering 3.6 per cent in May

Sydney has been by far the strongest performer over the past financial year with home values growing by 15.4 per cent.

Despite the recent monthly swings, Melbourne grew by 9.4 per cent over the past year, followed by Brisbane (7 per cent), Darwin (5.7 per cent), Perth (5.2 per cent), Adelaide (2.9 per cent), Canberra (2.9 per cent) and Hobart (2.5 per cent).

While Mr Lawless said it was too early to call the peak of the Sydney growth cycle he said that "the quarterly rate of growth peaked across the Australian housing market in August last year at 4.0 per cent".

"Since that time the rate of capital gain has generally trended towards a more sustainable level," he said.